The Federal Government has introduced to Parliament legislation covering education and professional standards for financial advisers.

The bill contains no surprises, with new industry entrants required to hold a relevant degree from January 2019 and current advisers having until January 2024.

It is expected most advisers will receive credits for previous training, but they will probably have to undertake bridging courses to meet the required standard.

The bill also establishes a standards board for the financial advice industry, to be in place by January 2019. It will create a code of ethics. Financial advisers will have to pass a national exam developed by the board, with a deadline of January 1 2021 for current advisers.

Financial Services Minister Kelly O’Dwyer says the current education framework lacks the incentives to encourage improved standards.

“Under the current law advisers can become qualified to provide financial advice after just four days of training, and there are no specific ongoing training requirements beyond that,” she told Parliament.

“There is now widespread support among industry, consumer groups, the Government and Parliament to raise education, training and ethical standards of financial advisers.”

She says the bill is a response to the Financial System Inquiry and the Parliamentary Joint Committee on Corporations and Financial Services’ inquiry into professional, ethical and education standards in the advice industry.

“Creating a holistic professional standards framework to raise the competency and professionalism of financial advisers is an important part of our commitment.”

The Australian Securities and Investments Commission will continue to set education and training standards for advisers who are authorised to provide general advice only.

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